Jump to content

SEP-IRA account title


Recommended Posts

Is it required, or even recommended, that when an employer establishes SEP-IRA accounts on behalf of their employees that the title of the accounts be in the name of the employer FBO the employee? Can the name of the account be in the name of the employee identified as a SEP-IRA? Any deductibility consequences if account is not in the name of the employer?

Link to comment
Share on other sites

[Hi J! :rolleyes: ]

Absolutely no. The registration/title should show the Trustee/Custodian's name and the beneficiary/owner's (fbo) name. In most cases, the account type is added to the registration or otherwise shown on the statement. In some cases, the plan name is also reflected on the statement.

E.g., XYZ Bank, Trustee, FBO {owner}, SEP-IRA. I am not aware of any institution that includes the plan (or employer's) name before the "SEP IRA" in the registration.

The account can not be titled/registered in the name of the employer fbo an employee. The assets must be held in the name of a bank/insurance company or other IRS approved institution.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...